Cloud communication and security provider Ooma, Inc. (NYSE:OOMA) recently appeared on a screen that combines Mark Minervini’s Trend Template with a High Growth Momentum filter. The idea behind this approach is straightforward: find stocks that already exhibit a strong, well-defined uptrend on the technical side, while also showing accelerating earnings and revenue growth on the fundamental side. Minervini’s method has produced two U.S. Investing Championship wins and relies on the principle that the biggest winners tend to be stocks that are both technically strong and fundamentally accelerating. By applying both filters in one pass, the screen narrows the field to names that tick both boxes simultaneously, a rare but potentially strong combination.
Trend Template Compliance at a Glance
Minervini’s Trend Template consists of eight technical rules that define a stock in a healthy Stage???2 uptrend. Ooma passes every one of them based on the data provided:
- Current price above the 150???day and 200???day moving averages. The last close is $20.78, well above the SMA(150) of $15.31 and the SMA(200) of $14.32.
- Both the 150???day and 200???day moving averages are rising. The SMA(200) rose from 14.275 to 14.3226; the SMA(150) and SMA(50) are also trending upward.
- The 50???day moving average is above both the 150???day and 200???day SMAs. The SMA(50) at $18.81 sits above the SMA(150) and SMA(200), confirming bullish alignment.
- The 150???day moving average is above the 200???day SMA. This is the case ($15.31 > $14.32).
- Current price is at least 30% above the 52???week low. The 52???week low is $9.79; $20.78 is 112% above that level.
- Current price is within 25% of the 52???week high. The 52???week high is $21.96; $20.78 is about 5.4% below it.
- Relative Strength (RS) is above 70. The ChartMill Relative Strength score is 93.87, meaning Ooma outperforms nearly 94% of all stocks.
These conditions are not arbitrary—they are designed to ensure that only stocks already in strong, sustainable uptrends make the cut. Ooma’s price action reflects institutional accumulation, a key trait Minervini looks for before a stock’s biggest moves.
High Growth Fundamentals Under the Hood
The screen also requires a ChartMill High Growth Momentum rating of at least 6 (the provided filter uses sl_ratingHgm_6_X). Ooma’s fundamental data explains why it qualifies:
- Earnings growth is accelerating. TTM EPS growth is +63%, and the most recent quarter showed +75% year???over???year. The prior three quarters also posted accelerating growth (62%, 59%, 53%). Analysts expect the next quarter to continue at +47%.
- Revenue growth is picking up. The latest quarter saw sales jump 24.8% year???over???year, a sharp acceleration from the prior quarter’s 14.6% and the 3–4% range a year ago. Full???year revenue growth is 6.5%, but the quarterly trend is clearly strengthening.
- Profit margins are improving. The latest quarterly profit margin is 3.18%, up from 2.06% two quarters ago and 1.89% three quarters ago. The trailing???twelve???month margin is 2.36%, and free cash flow per share grew 194% over the past year.
- Earnings surprises are consistent. Ooma has beaten EPS estimates in each of the last four quarters, with an average beat of 12.4%.
- Upward estimate revisions. The next???year EPS estimate has been revised upward by 1.94% over the past three months, and revenue estimates for next year have been raised 1.44%.
Minervini emphasises that “big earnings attract big attention.” Ooma’s combination of accelerating earnings, surging revenue growth, and improving margins fits the profile of a stock that could draw institutional buying pressure—the kind of catalyst that fuels the next leg higher.
What the Technical Report Shows
The full technical analysis report paints a picture of a stock with near???perfect technical health. The ChartMill Technical Rating is a 10 out of 10, reflecting strong performance across multiple timeframes. The Setup Rating is an 8, indicating that the stock is consolidating after its recent advance, forming a potential launching pad. Notably, the report flags that large players (measured via Effective Volume) have shown recent interest, which often precedes a meaningful breakout. The automated trade suggestion points to a buy stop above the nearest resistance zone around $20.98, with a stop loss just below support at $19.35, a typical Minervini???style risk???reward setup.
Matching Screens Confirm the Reading
Ooma also appears on two other relevant ChartMill screens. The Breakout Setups list highlights stocks with strong technical strength and constructive consolidation, exactly what Ooma’s high Setup Rating indicates. The Minervini Stocks screen captures names that meet Minervini???style trend and fundamental growth criteria, and its description_short notes that Ooma combines strong fundamental growth characteristics with technical strength. These confirmations add another layer of conviction.
Scanning for More Candidates
Stocks that satisfy both the Trend Template and high???growth momentum criteria remain relatively rare, but they can be found with a systematic screen. To run the same filter used to identify Ooma and explore other potential setups, follow the direct link to the screener. That list will be updated daily as market conditions evolve.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own research and consider your risk tolerance before making trading decisions.
Read full article here »
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Ooma (NYSE:OOMA): A High Growth Stock with Technical Strength and Accelerating Fundamentals
Cloud communication and security provider Ooma, Inc. (NYSE:OOMA) recently appeared on a screen that combines Mark Minervini’s Trend Template with a High Growth Momentum filter. The idea behind this approach is straightforward: find stocks that already exhibit a strong, well-defined uptrend on the technical side, while also showing accelerating earnings and revenue growth on the fundamental side. Minervini’s method has produced two U.S. Investing Championship wins and relies on the principle that the biggest winners tend to be stocks that are both technically strong and fundamentally accelerating. By applying both filters in one pass, the screen narrows the field to names that tick both boxes simultaneously, a rare but potentially strong combination.
Trend Template Compliance at a Glance
Minervini’s Trend Template consists of eight technical rules that define a stock in a healthy Stage???2 uptrend. Ooma passes every one of them based on the data provided:
These conditions are not arbitrary—they are designed to ensure that only stocks already in strong, sustainable uptrends make the cut. Ooma’s price action reflects institutional accumulation, a key trait Minervini looks for before a stock’s biggest moves.
High Growth Fundamentals Under the Hood
The screen also requires a ChartMill High Growth Momentum rating of at least 6 (the provided filter uses
sl_ratingHgm_6_X). Ooma’s fundamental data explains why it qualifies:Minervini emphasises that “big earnings attract big attention.” Ooma’s combination of accelerating earnings, surging revenue growth, and improving margins fits the profile of a stock that could draw institutional buying pressure—the kind of catalyst that fuels the next leg higher.
What the Technical Report Shows
The full technical analysis report paints a picture of a stock with near???perfect technical health. The ChartMill Technical Rating is a 10 out of 10, reflecting strong performance across multiple timeframes. The Setup Rating is an 8, indicating that the stock is consolidating after its recent advance, forming a potential launching pad. Notably, the report flags that large players (measured via Effective Volume) have shown recent interest, which often precedes a meaningful breakout. The automated trade suggestion points to a buy stop above the nearest resistance zone around $20.98, with a stop loss just below support at $19.35, a typical Minervini???style risk???reward setup.
Matching Screens Confirm the Reading
Ooma also appears on two other relevant ChartMill screens. The Breakout Setups list highlights stocks with strong technical strength and constructive consolidation, exactly what Ooma’s high Setup Rating indicates. The Minervini Stocks screen captures names that meet Minervini???style trend and fundamental growth criteria, and its description_short notes that Ooma combines strong fundamental growth characteristics with technical strength. These confirmations add another layer of conviction.
Scanning for More Candidates
Stocks that satisfy both the Trend Template and high???growth momentum criteria remain relatively rare, but they can be found with a systematic screen. To run the same filter used to identify Ooma and explore other potential setups, follow the direct link to the screener. That list will be updated daily as market conditions evolve.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own research and consider your risk tolerance before making trading decisions.
Read full article here »